Offshore Banking Updated:
If you work abroad, have an overseas property, conduct business internationally or are taking those first steps towards retiring in the sun, making international payments will probably be a frequent occurrence. But, instead of manually arranging those payments each time, why not set up regular transfers?
Let's start by looking at what these payments actually are. Essentially, they're a direct debit but for international use – you arrange the payment dates and amount to be transferred with your international money transfer provider, much like you would with your bank when arranging traditional direct debits, and the payments will be made without you having to do anything further.
The first benefit will be the convenience. Arranging regular payments will mean there's no need to waste time setting up a transfer every time, and because everything will be automated, you can be confident that payments won't be missed.
But, perhaps the biggest plus point will be the cost benefit, particularly if you head to currency exchange specialists instead of your bank. Banks typically charge higher fees (some charge up to £25 for each transfer) and don't have such favourable rates as the specialists, and they often include extra charges that aren't always easy to spot.
By arranging regular payments you can avoid these costly fees, and if you head to the specialists you'll invariably get a much better deal. In some cases, you can be given the option to fix your exchange rate for the length of the direct debit term, typically around 12 months. This can give you future security as you know exactly how much you'll be paying, protecting your payments from currency fluctuations.
Well, there's no reason why not! If you regularly send payments abroad – such as mortgage payments for a foreign property, making salary transfers or transferring a UK pension overseas – then arranging this kind of direct debit could be a far more cost-effective and convenient method.
It could save you money while giving you peace of mind in knowing that everything's taken care of. You need never worry about missing a payment or about paying over the odds for the service, and once it's arranged, there's no need to lift a finger. So why not get started? Head to the currency specialists and see if this kind of system could work for you.
What is a Direct Debit?
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